As a home owner you can sell your Shared Ownership property like any other property. However, there are restrictions on the sale and subletting of these properties. This is to ensure the properties remain available to people in need of affordable housing.

There is a procedure to be followed when selling your Shared Ownership property, which will be set out in your lease.

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Things to consider

Selling a Shared Ownership property

As a home owner you can sell your Shared Ownership home like any other home. However, there are restrictions on the sale of these properties if you haven’t staircased to 100% ownership. This is to ensure the properties remain available to people in need of affordable housing. There is a procedure to be followed when selling your Shared Ownership home, which will be set out in your lease.

Your lease will explain the procedure to be followed when selling your home. This will include advising your Housing Association that you wish to sell. The Housing Association will require a RICS red book valuation to be undertaken to determine the market value of your home, the cost of the valuation payable by you. Upon receipt of the valuation you will be sent a copy of the valuation report and if happy you can instruct the Housing Association to sell your home. In most cases they will require you to transfer the lease to a buyer of their choice (a first time buyer unable to buy on the open market, someone who is in the same situation that you were when you bought your home), or they may allow you to place the property on the open market. In either case, the price will be no more than the current market value of your share in the property. The Housing Association will usually apply a charge for the resale process that is known as a nomination fee.

Subletting

Shared Ownership is an affordable home scheme aimed at helping those own a property of their own, which without the scheme would likely not be possible. It is therefore for you to live in and not to profit from letting it out. Whilst you do not own 100% of your home you will be unable to sublet it under the restrictions of your lease. However, once you have staircased to 100% ownership there is usually no restriction on subletting your property. Be sure to check your lease and speak with your Housing Association to confirm this.

How it works

Step 1

Inform your Housing Association you wish to sell.

Step 2

A RICS red book valuation undertaken to determine the Market Value. Payable by the seller.

Step 3

On receipt of the valuation the Housing Association send out the report to you confirming the sale price.

Step 4

The seller must approve the valuation and instruct the Housing Association to start marketing (This is the start of the Housing Associations period of selling)

Step 5

Housing Association markets the property or approves property goes on the open market until an eligible buyer is found.

Step 6

When buyer is found, they have a detailed financial assessment with a Mortgage Broker to assess affordability

Step 7

Your approved buyer reserves the property and then follows the buying process

Step 8

Housing Association sends out Memorandum of Sale (confirmation of your reservation).

Step 9

Your conveyancer issues Contract.

Step 10

Your buyer’s conveyancer raises and enquiries they need.

Step 11

Your conveyancer responds to our enquiries with assistance from the Housing Association (Housing Association/Freeholder will charge a fee for legal enquiries which you must pay).

Step 12

Your buyer’s mortgage offer issued (if required).

Step 13

Exchange within 28 days of the issue of contracts.

Step 14

Completion.

Things to know

Restrictions can apply to the resale and sublet of a shared ownership home.

Shared Ownership homes must be resold to buyers who are unable to buy on the open market and meet the shared ownership eligibility criteria in the same way as when you bought it or offered to the Housing Association.

Your lease will confirm how long the Housing Association has to find a buyer similar to you when you bought the property (normally 8 weeks). The time starts from you approving the sale price based on a RICS valuation.

Selling a shared ownership property will incur costs for selling the property, gaining a value for the property and conveyance costs.

If you are selling a property any arrears on service charges must be paid at completion.

Generally, you are unable to sublet a property you part-own under the Shared Ownership scheme.

The team helping you sell or sublet a Shared Ownership property